Guar prices may extend gains: Angel Commodities

Angel Commodities has come out with its report on agricultural commodities. As per research firm Guar prices may extend the gains of the previous day, however, prices may again decline and settle lower towards the end on expectations that the arrivals may commence soon.

Guar Complex
Guar seed prices which declined sharply during the last week recovered and settled 1.74% higher on Monday owing to short coverings. Subdued demand and expectations of fresh arrivals had pressurized prices during the last week. Global uncertainties have raised the concerns over exports of Guar gum in the year 2011-12, which had crossed 4 lakh tonnes in the fiscal year
2010-11. The area under Guar cultivation in Rajasthan this season stands at 2.9 million hectares, compared to 3 million hectares last season. In Haryana the area under Guar has come down from 256,000 hectares registered last year to 215,000 hectares this year. (Source: Business Standard) Production & Exports According to the first advance estimates, Guar seed output in Rajasthan is estimated at 11.36 lakh tonnes for 2011-12 season compared to 15.46
lakh tonnes in 2010-11. According to Agriculture and Processed Food Products Export Development Authority, Indian Guar gum exports for the period April-March 2010-11 surged by 84% and stood at 4,03,007 tonnes as compared to 2,18,473 tonnes during the last year. In the FY 2011-12 export demand of Guar gum continued to remain higher with exports of 30,816 tonnes in the month of April 2011, up 51 % as compared with 20,376 tonnes in 2010-11 season. Outlook: Guar prices may extend the gains of the previous day, however, prices may again decline and settle lower towards the end on expectations that the arrivals may commence soon. If global uncertainty continues, then the exports might get hampered in the coming months thereby putting downside pressure on the prices. Improvement in the area covered under Guar in Rajasthan and thereby hopes of better production may further put downside pressurize on the Guar prices. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

Read More